BUZZ-COMMENT-Dollar may also fly to the moon if no Fed cut before November

Credit: REUTERS/Nguyen Huy Kham

Feb 23 (Reuters) - The timing of Federal Reserve action to begin cutting interest rates remains a key influence on FX rates - with scope for the dollar to skyrocket if the anticipated easing cycle does not commence before November's U.S. Presidential election.

Although Fed Governor Christopher Waller on Thursday said the U.S. central bank is in "" to reduce rates, it would be a huge shock if the Fed does not start cutting rates until after Nov. 5.

The Fed will deliver five interest rate verdicts before Nov. 5 - the last of which is scheduled for Sept. 18, with its first post-election decision due on Nov. 7.

Hawks opposed to a Fed rate cut anytime soon may squawk if January's U.S. PCE number comes in higher than the 0.3% forecast next week (Feb. 29).

The USD index hit a three-month peak just shy of 105 last week, following hotter than expected US January CPI data.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)

((robert.howard@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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